CARE gives 'Grade 2' rating to Cambridge Tech IPO
Kolkata: Rating agency CARE has given an 'IPO Grade 2' rating to Cambridge Technology Enterprise Ltd. The grading has factored in the experience of CTEL's promoters, competency of the senior management team, locational advantage, business prospects and the like. It is, however, constrained due to the company's small size of operations, the highly competitive nature of the IT industry, uncertainties with regard to its acquisition-dependent growth strategy, entire dependence on a single market, high dependence on channel partners for sourcing business and client concentration, CARE has mentioned.

IPO grading is a service aimed at facilitating the assessment of equity issues offered to public, the rating agency has stated, adding that grades assigned to issues will represent a relative assessment of the `fundamentals' of the issuers. Care says its grading will help investors, especially retail investors, to appreciate the meaning of disclosures listed in offer documents, it said.
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DHL to buy Blue Dart shares at Rs550 a share
Mumbai: DHL will acquire Blue Dart Express shares at a maximum of Rs550 per share to buy out the company and delist it from the exchanges. DHL now owns 81 per cent stake in Blue Dart Express.

DHL will acquire the shares under a reverse book-building process, subject to all requisite shareholder and regulatory approvals being obtained.

The exit price will be determined in accordance with the reverse book build process specified by regulations and shareholders may tender their shares at any price at or above the "floor price", also determined by the SEBI guidelines that works out to around Rs500 a share, said a statement. DHL's maximum price of Rs550 per share is at a premium of around 10 per cent to the average of the closing prices of the company's shares as quoted on the National Stock Exchange (NSE) in the six months preceding the date of Delisting Proposal and a 16 per cent premium to the closing price of Rs474 per share on the NSE on August 11, said the statement. DHL reserves the right not to acquire the offered shares if the final price, as established pursuant to the guidelines, is more than Rs550 per share.

DHL had acquired Blue Dart at Rs350 per share one and a half years ago.
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Gokaldas Exports offers 30 per cent dividend
Bangalore: Gokaldas Exports has declared a dividend of 30 per cent or Rs3 per share of Rs10 for the year ended March 31, 2006. The dividend for the previous year was 20 per cent.

The company invested about Rs85 crore in the last fiscal and Rs40 crore in the current fiscal so far for setting up factories in Chennai, Mysore and Bangalore, which are likely to commence commercial production during the current fiscal and in laundry and knitwear units, which are already operational.
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DLF IPO may be postponed
Mumbai: DLF's initial public offering (IPO) is unlikely to hit the market soon.

According to industry sources, the problem of rights issue of debenture for minority shareholders is yet to be resolved and hence, the IPO will not come soon.

DLF has proposed an IPO of around Rs13,000 crore; the amount is to be utilised in facilitating expansion plans of the company. DLF will offer 20.2 crore equity shares of Rs2 each to the public.
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Real estate company Orbit Corporation plans IPO
Mumbai: Real estate developer Orbit Corporation Ltd (OCL) has filed a draft red herring prospectus with SEBI for its initial public offering. The company proposes to offer 91 lakh equity shares of Rs10 each for cash at a premium, to be decided through a 100 per cent book building process, along with one detachable warrant per equity share, which may be converted into an equity share at a later date. The offering will constitute 25.09 per cent of the fully diluted post-issue equity capital prior to the conversion of the detachable warrants, and 40.11 per cent assuming full conversion of the detachable warrants, said a press note issued by the company.

50 per cent of the offer is reserved for qualified institutional buyers, and non-institutional investors (NIIs) will get a maximum allotment of 15 per cent on a proportionate basis. The rest would be available for retail investors. The company is currently executing 12 projects in Mumbai, a majority of which are redevelopment projects.
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ICICI Bank sells stake in IDFC for Rs252-cr
Mumbai: ICICI Bank has sold its entire stake of 3.74 per cent in Infrastructure Development Finance Company Ltd (IDFC) to Goldman Sachs for Rs252 crore.

The Mauritius-based subsidiary of global investment bank Goldman Sachs today acquired 4.2 crore shares of IDFC, representing nearly 3.74 per cent stake in a bulk deal on the Bombay Stock Exchange. The deal was executed at a price of Rs60 per share.

According to data available on the BSE, ICICI Bank held 4.2 crore shares in IDFC at the end of June quarter, which were all offloaded following today's bulk deal.
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Tata Motors to float IPOs for two arms
Mumbai: Tata Motors is said to be working on an initial public offering (IPO) for two of its group companies -HV Axles and HV Transmissions - as part of a larger corporate restructuring programme and will also tap alternate options of raising resources to part-finance expansion plans.

According to sources, senior company officials have already begun the process by meeting with investment bankers. The IPOs for the two wholly-owned subsidiaries of Tata Motors are likely to be scheduled by the end of the current fiscal year.

The stake sale is expected to help the company in price discovery and also extend the two companies' clientele. Both HV Axles and HV Transmissions were spun off Tata Motors' commercial business unit in '00. The two companies supply components only to their parent company Tata Motors.

According to analysts, based on FY08 earnings and a price earning multiple of 12, the total value of Tata Motors' stake in HV Axles and HV Transmissions could be in the region of Rs 773 crore and Rs453 crore, respectively.

HV Axles and HV Transmissions were formed in March '00 and they acquired Tata Motors' heavy axle division and gear box division at Jamshedpur, respectively. HVAL has an equity capital of Rs45 crore while HVTL was started with an equity capital of Rs40 crore.
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Carlyle to invest $100mn in India
Mumbai: Private equity company Carlyle Group plans to invest around $100m in Indian companies by way of growth capital over the next one year according to senior company officials.

Carlyle had raised $668m in June for its third growth capital fund, Carlyle Asia Growth Partners III, which invests in companies in India, China, Japan and Korea in their initial stages.

Carlyle has outstanding investments to the tune of around $100m in Indian companies, which include Financial Software & Systems, Newgen Imaging Systems, QuEST, LearningMate Solutions, and Claris Lifesciences.
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GMR Infra to list on Aug 21
Mumbai: GMR Infrastructure will be listed on the BSE and the NSE on August 21. The company has fixed the issue price at Rs210 per share.

The issue, which was subscribed 6.68 times, had opened for subscription on 31 July, 2006 and closed on 4 August, 2006.

According to a release issued by the company today, GMR Infrastructure proposes to use the proceeds from the fresh issue for investment in various infrastructure special purpose vehicles.

GMR Infrastructure has placed 2.89 per cent of the post-issue equity with ICICI Venture for Rs.250 crore, 1.11 per cent with Citigroup Venture Capital for Rs99.17 crore, 0.75 per cent with George Soros promoted Quantum Fund for Rs67.25 crore and 0.30 per cent with Punjab National Bank for Rs27 crore.

While Citigroup, Quantum and PNB had picked the stake at Rs270 per share, ICICI Venture bought shares at Rs261 per share. Infrastructure Development Finance Corporation (IDFC), which had also invested in the company, will hold 3.55 per cent of the post issue capital according to a release.
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Reliance Life Insurance launches Reliance Connect 2 Life Plan
Mumbai: The Anil Dhirubhai Ambani Group company Reliance Life Insurance has launched the Reliance Connect 2 Life Plan, its first product since acquiring the life insurance business of AMP Sanmar in October last.

Reliance Connect 2 Life is a 15 year insurance-cum-savings plan for individuals in the age group of 18 to 45 years with a minimum sum assured of Rs one lakh. The insurance cover can be upgraded in the second and third year up to a sum of Rs10 lakh.

Reliance Life Insurance has 30,000 insurance advisors spread over 158 branches across 143 locations and a call centre to service its customers. HDFC and UTI bank would act as a collection network. The company is in the final stages of negotiation with banks for selling its products through the bancassurance channel.

The company plans to add another 10,000 to 12,000 advisors who are under training. Reliance Capital has infused Rs166 crore in Reliance Life Insurance, which has a capital base of Rs383 crore and an employee strength of 3,654, including 822 employees of AMP Sanmar.
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